Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

FCA reveals cyber attacks on wealth firms

FCA reveals cyber attacks on wealth firms

Four separate cyber attacks on wealth management firms were reported to the Financial Conduct Authority (FCA) in 2016.

In response to a request under the Freedom of Information Act, the regulator told Wealth Manager that two of the four assaults were ransomware attacks. Ransomware attacks are a type of ‘cyber blackmail’ that restricts a computer’s access to data in order to force the victim to pay a ransom to decrypt their data and regain access to their systems.

In December, Wealth Manager’s sister title New Model Adviser‰ revealed such an attack was carried out on independent financial adviser (IFA) firm, Argyle Financial Group.

The FCA stated that one of the two other attacks was ‘in relation to hacking’, while another company was the victim of a distributed denial-of-service (DDoS) attack. DDoS attacks are an effort to immobilise an online service by overwhelming it with traffic from multiple sources. 

The request asked the FCA about reports of cyber attacks on both wealth and asset management firms in 2015 and 2016.

The watchdog stated that it had not received any reports of cyber-attacks in 2015 from either asset or wealth managers. It also noted that asset managers did not report any attacks in 2016 either.

The FCA added that it ‘has no direct involvement in the network defence activities undertaken within these firms, but provided oversight to the appropriateness of the firm’s responses.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter